MANAGEMENT ACCOUNTING CHANGE

Resistance to change is a subject that has received considerable attention in management literature.  The reasons for resistance to change were seen as the result of the following factors:

·         Change in job or skill requirement

·         Reduction in financial security

·         Psychological threat

Those who resist change are regarded as irrational and subversive.  Argument have been put forward that change is resisted when it challenges the existing status quo.  The resistance may be done to

·         Threaten existing powers of management

·         The dominant norms and values held by numbers

·         Not being congruent with the existing culture

·         Mental allegiance to specific ways of thinking and doing things in the organization

-       Not compatible with the norms and work practices of the employees

-       Conflict with the existing values of the organization members.

In any case, the initiators of change need to be in place in order to force through the implementation.  This can be.

·         Through hierarchical power

·         By obtaining the backing of those with sufficient power to force implementation

·         Through adequate monitoring system

·         Gain the supporting and resources from the parities who resist

Findings from research shows that there are a few effective way to promote change:

·         Restructuring organizations in order to place people in new organizational context (new roles, relationship and responsibilities)

·         Awareness of internal context of organizational

Change, albeit a simple one might need a new way of thinking or doing things.  Change that does not conflict with the existing norm and values could be accommodated and might be easier to implement.  Deeply shared assumptions and values held by organization members can make change difficult.

It is necessary to understand the cultural patterns in the organization and how they are sustained.  Successful change might achieved through change might be achieved through:

·         Change initiatives

·         Restructure

·         Adapt some basic assumptions.

Shared From Article by

Dr. Siti Nabiha Abdul Khalid

Accountant Today, Management and Accounting

February 2006